Washington State Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The main purpose of a real estate appraisal is to determine the fair market value of a property. This process involves a detailed analysis conducted by a professional appraiser, who considers various factors such as the property’s condition, location, recent sales of comparable properties, and current market trends. Establishing an accurate fair market value is crucial as it helps buyers and sellers set realistic expectations for the property's selling price and ensures that lenders are making sound financing decisions.

While helping sellers in marketing their property can be a secondary benefit of an appraisal, it is not the primary purpose. Similarly, establishing a mortgage payment plan or negotiating property terms are actions that may occur subsequent to determining the property's value but are not inherent goals of an appraisal itself. The appraisal's critical function is to provide an objective valuation, which is foundational in various real estate transactions and financial decisions.